Comment on “contract employees” stirs emotion, debate

What is a contract employee? Are companies bending the rules to misclassify people as contractors in a tight labor market? Those issues surfaced thanks to a recent blog entry that began with an observation by a reader.

Most of the 75 commenters seemed furious about two issues that are easily confused — the use of temporary workers hired on contract through placement agencies, and the designation of someone as an independent contractor — a person who should not work in an office but should carry out their tasks in a self-directed fashion. The first type of person has taxes deducted from their paycheck by the temp agency. The latter is responsible for self-employment taxes.

One commenter, identified only as Surelyyougest, wrote:

I am a victim of this. I was classified as an “independent contractor” for nine months, then they said being a contractor is limited to nine months, then “hired” me as a temp worker for less pay doing the exact same work. The irony of it was it was at a crappy job where I was micro-managed and “independent” was a cruel joke. I have filed an SS8 with the IRS and a wage complaint with the department of labor standards (EDD doesn’t handle this; they will only be able to maybe correct my unemployment benefits if/when this gets corrected). I filed in August, and haven’t heard a thing. My situation was pretty clear cut, and I luckily, and smartly, had copies of email from my supervisor so when I was laid off, I was ready to nail their behinds. This economy will NEVER be rectified until us poor wage slaves get a fair shake.

Jumpinjim said:

A lot of talented people I want to hire want to be Independent Contractors and work for a company that supports them in that. The downside for them is that big companies are now super-sensitive to IRS and other rules and hire lawyers and personnel agencies who make it almost impossible to do business with them on their terms. Everyone loses then.

Another reader wrote about being victimized by a small business that hired them on a “contract” job that was really an office job that stretched on for many months — and eventually became permanent:

I was completely ripped off — I’m going to need to hire someone to do my taxes this year. I don’t have the accumulated sick pay, vacation pay, etc. that I am owed. The company did it because they can — I’m not going to report them because I need the job and can’t work for people while suing them. Plus, the company itself is really struggling this year and can’t afford a lawsuit.

A comment from Inf11B captured the labor/management power (im)balance:

These days, just be happy you’re getting interviews, much less a job.

I would rather see companies reach out to try to hire short term contractors than not hire at all.